ECON 421 - Behavioral Economics and Finance

Prerequisites, MATH 110, MATH 111, MATH 203, ECON 200. This course will introduce you to the fields of behavioral economics and behavioral finance. Behavioral economics is the economic study of human behavior in individual choices, social situations, markets and institutions motivated by the goal to improve the descriptive accuracy and explanatory power of traditional economic analysis. Behavioral finance is the application of insights from behavioral economics and psychology to study individual financial decisions and properties of financial markets and market prices. We will explore both areas from the perspective of different methodologies (experiments, theory, field studies), focusing on both fundamental concepts and their applications at different levels of social aggregation (from individuals to markets). As indicated in their respective syllabi, students in ECON 521 will be required to undertake a final project and report that will not be required of students in ECON 421. Some sections of ECON 421 and 521 will be taught together. (Offered spring semester.) 3 credits